Deal: Large dairy operation

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Texas based dairy operation that plans on building a new state of art facility on existing property located in Central Texas In 2015, the present dairy operation, including an additional farm in West Texas, generated $27.7 million in revenue and $6 million in EBITDA. The Central Texas farm generated $12 million in revenue and $2.9 million in EBITDA The new facility would allow my client to increase the number of milking cows to 5,000 from 2,700, add a new revenue stream, and result in substantial cost savings. We estimate that in an average year, the new facility will generate $6.5 million in EBITDA. The total cost of the new facility is $21.5 million. My client will contribute $ 8 million, and raise $6 million in bank term debt. My client wishes to raise the remaining $7.5 million thru the sale of preferred units. We can build in an attractive ROI thru a dividend rate and mandatory redemption. We have a verbal offer on the term debt. If you are interested in considering the preferred financing, we can send you the offering memorandum and a forecast.
Food & Beverage
United States